SK Telecom and Germany's Deutsche Telekom have signed a strategic cross-investment partnership aimed at strengthening their competitiveness in 5G.
Under the agreement, SK Telecom will invest in MobiledgeX, a Deutsche Telekom subsidiary focused on edge computing technology.
Deutsche Telekom will reciprocate by investing the same amount in ID Quantique, an SK Telecom strategic partner in quantum cryptography communication technology.
The operators have made the cross-investment in a bid to ensure they are in a position to offer specilized 5G services in the upcoming 5G era, supporting the expected development of intelligent services such as connected vehicles, smart factories and wearable devices.
As part of the collaboration, SK Telecom and Deutsche Telekom are evaluating applying quantum cryptography communications technologies on their respective 5G trial networks.
The companies are also reviewing using mobile edge computing technologies to reduce data transfer time, for applications such as enabling authorities to conduct on-site monitoring of disaster-affected areas or responding more quickly to traffic accidents.
The collaboration will also cover initiatives in new business areas such as artificial and virtual reality.
“SK Telecom is pleased to enter into a cross-investment agreement with Deutsche Telekom as it will serve as a valuable opportunity for us to further solidify our 5G leadership in the global market and drive new growth,” SK Telecom president and CEO Park Jung-ho said.